Author(s): W.A.N. Priyadarshanie, Siti Khalidah Binti Md Yusoff, S.M. Ferdous Azam
The objective of this paper is to give a comprehensive overview of the academic literature focusing on a rapidly emerging field of Integrated Reporting (IR) practice in Sri Lanka. The paper reviews the existing literature and gives insights on the integrated reporting practice which is at the embryonic phase in the Sri Lankan context. Semi-systematic approach of literature review was utilized for this study. The level of IR adopted, motives behind IR adoption, benefit of adopting IR and barriers and limitations of adopting IR in the Sri Lankan context have been mainly identified in this paper. This analysis revealed that the degree of compliance with the content elements prescribed in the International Integrated Reporting Framework (IIRF) by Sri Lankan listed companies is rapidly increasing. However, it is discovered that the disclosures under the content elements of "risk and opportunity," "strategy & resource allocation," performance," and "forecast" need to be improved. Awarding schemes, programs and workshops on IR which is conducted by professional accounting bodies, pressure from auditors, pressures from competition, global trend, corporate image and code of best practice in corporate governance have affected more in achieving a high degree of IR adoption among the Sri Lankan listed companies. The study's key limitation is that it relies on literature that is still in its early stages of development. Academics, regulators, and reporting organizations may benefit from this research, which raises awareness of areas of integrated reporting that require further development and much more evidence to enhance policy and practice improvements. This study identified some areas where more academic research is needed. As an evolving phenomenon, limited empirical studies are exploring IR practice and this paper provides some contribution to the understanding of IR practice in the Sri Lankan context as a voluntary regime.